The Marine Energy Wales annual State of the Sector Report has found that investment in the Welsh marine energy sector has nearly quadrupled on the previous year’s figures.
This £103.4m surge is attributed to infrastructure expansions paving the way for future deployments and sector growth.
The tidal stream segment emerged as the largest contributor to the Welsh economy, with £45.1m in spending and investment, closely followed by the supply chain at £44.7m.
Magallanes Renovables received crucial UK government support to deploy its tidal stream technology to the Morlais Tidal Demonstration zone off the coast of Anglesey during the report period.
This will be the first tidal array in Welsh waters, due for completion in 2025.
The floating offshore wind sector demonstrated rapid growth, injecting £11.6m into the economy in the past year.
Wales’ first floating offshore wind (FLOW) farm, Erebus, developed by Blue Gem Wind was approved during the report period.
With the potential to generate £1bn in economic opportunities over the next five years alone, floating wind is poised to play a pivotal role in Wales’ marine energy sector, according to the report.
The study also sheds light on the sector’s employment landscape, gender distribution, and the economic potential of various technologies.
Recognising the importance of skills development, the report emphasises regional initiatives aimed at fostering education and training for coastal communities.
These efforts aim to raise awareness of the economic and job opportunities available and strengthen the country’s capacity to deliver local, well-paid, green jobs in the renewable energy industry.
Marine Energy Wales programme manager Tom Hill said: “Revenue support for commercial-scale projects at a realistic market price is critical.
“The recent decision to reduce the tidal stream ringfence is deeply concerning, jeopardising megawatt-scale tidal deployment in Wales and the UK.
“Despite having the world’s largest pre-consented demonstration zone in North Wales, market mechanisms and the loss of access to European funding schemes pose challenges to this innovative sector.”